SALISBURY BANK LINE OF CREDIT RENEWAL – VILLAGE OF RED HOOK

Resolution #21-2020 — 2020-10-13

WHEREAS

the Village of Red Hook periodically receives grants for various infrastructure improvements and vehicle/equipment purchases that are "reimbursement" grants where the village has to spend its resources and process reimbursement requests
these grants are a significant aspect in the Village's ability to perform infrastructure upgrades and make certain purchases
the Village periodically makes purchases that are funded from multiple budget lines but needs an upfront payment method to issue one check
there are needs to reduce the impact on the Village's General Fund by exercising the line of credit as a bridge loan for the time gap between payment by the village and reimbursement by the grantor or internal budget lines
Salisbury Bank offers a line of credit at an interest rate of prime less .25%

the continuance of the line of credit from Salisbury Bank for $200,000 at prime less .25%
the specific purpose and amount utilized in a bridge loan of the obligation is to be stated in separate, specific resolutions when the need arises
the Mayor is authorized to sign the continuance note and any ancillary documents related to this resolution. The Village Clerk is directed to attest and affix to such notes the corporate seal of the Village of Red Hook
the faith and credit of the Village of Red Hook are hereby pledged for the payment of the principal and interest on the note